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Grand Rapids City Manager Greg Sundstrom (Oct. 23, 2009)

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City floats tax hike plan

Voters may see issue on ballot this year

Updated: Tuesday, 02 Feb 2010, 6:32 PM EST
Published : Tuesday, 02 Feb 2010, 12:49 PM EST

GRAND RAPIDS, Mich. (WOOD) - When city fire crews rolled to the burning dentist office on the city's south side earlier Tuesday, just three fire companies were left to cover the rest of the city.

"That's not safe for the citizens. It's certainly not safe for us," said Grand Rapids Firefighter Local 366 President Joe Dubay.

From fire and police to parks and recreation, city services have been cut over and over. And with tax revenues, state-shared funds and just about every other income source continuing to slide, City Manager Greg Sundstrom said it's time to let residents decide what services they want, and what they're worth with a tax vote.

"If we don't have a ballot proposal, I fear additional lay-offs and further reductions," Sundstrom told commissioners during their annual retreat Tuesday.

If approved by voters, Grand Rapids income tax rates would go up, from 1.3% to 1.5% for city residents and from .65% to .75% for non-residents. The additional tax would raise $7 million, and recall laid off firefighters, police officers and restore some park maintenance work.

But the question has to get on the ballot first. That will be up to city commissioners. They'll have to decide that by late February to get the question on the May ballot.

That may be too soon for some commissioners.

"In order for me to feel comfortable placing this on the ballot, I need to feel that we've gone through all of those sort of budget tools and suggestions prior to asking the voters for that," said First Ward Commissioner Dave Shaffer.

And while the measure promises to partially restore vital services, like police and fire, union leaders say they want some assurances before they show full support for it.

"Some kind of assurance to the taxpayers and to the voters that the money's going to be going for necessary services like police and fire," saidDavid Leonard, President of the Grand Rapids Police Officers Association.

The city is currently facing a $27 million deficit.

24 Hour News 8 spoke with the City Commissioners about this idea. Commissioners Walt Gutowski, Elias Lumpkins and James White are in favor of the plan. Dave Shaffer and Rosalynn Bliss are undecided, while Mayor George Heartwell wants to hear more discussion before revealing his opinion.

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